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Comments by "" (@baronvonlimbourgh1716) on "Is America Stealing TSMC?" video.
Tax competition. If you get massive tax exemptions and the local state will guarantee you water no matter what at their own expense, that is what you will choose.
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@HJJ135 there is no reason to asume china's army is in a simmilar state as that of russia. China has the economic power to support and develop it's forces. Moral and dicipline of troops is high in china while corruption is not more widespread then other western nations and is activly persecuted. Chinas forces probably are not as good tacticly and not directly war tested at the moment, but that will only get better over time as it start to join in on future international joined peacekeeping or interventions. And that does not mean it would not be able to inflict heavy losses on their adversary. It sounds nice but there really isn't much to support that idea.
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It's easy. If the dessert offers you the biggest tax exemptions and guarantees you water no matter what on it's own dime, you will pick the dessert..
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@en0n126 tsmc will have guarantees to have first dibs on that water before anyone else.
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@xungnham1388 if only industries existed that do not require huge amounts of resources that are in short supply right. Ahh well. Maybe we will create some of those in the future..
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@uku4171 don't be bro. Not nescesary 👍
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Cotton mills and steel plants aren't fundamental to the millitary industrial complex. Tsmc is, and the whole chips bill was created to pull tsmc into the usa. The samsung and intel parts where just added to make it look like an open process. This will also be a one time thing and it won't happen again. Tsmc is now invested in the usa
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@uku4171 but high tech , high quality steel is available from multiple places. The millitary industry doesn't need much steel, it needs specific steel. And that need probably is covered in the usa or at least in multiple friendly places. What tsmc offers was only available in taiwan. Nowhere else.
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@danharold3087 sure. My point is that only what is demanded by the millitary industrial complex is incentivised. And is done without drama or arguing and is done on increadible short notice. Like the chips bill. If the millitary industry needs specialty steel that is only available in a single place abroad tomorow. Next week a bill will be passed to stimulate the steel industry. It will be just enough to get whatever is needed to move to the usa and 1 or 2 other companies get sprinkled some funding as well to make it look fair and after that any stimilus for the steel industry will be dormant for another 30 or 40 years.
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Time is on china's side in this case. I don't think they will invade taiwan because it makes no sense. And china is not russia's olicharchy. Keeping up the threat to taiwan does weaken taiwan substantially, as long as they can keep the insecurity up foreign investment will rather look elsewhere then taiwan. And it makes it more dependent on foreign entities. It also triggered the usa to start pulling out what it deems valuable out of taiwan. It is a small step now, but if china keeps it up for another decade there will be more and more of thise small steps made, every time making taiwan less worth it to create major conflict over by the west. And during that time china will only grow stronger also making defending taiwan a less attractive option. China is betting that if they keep the conflict brewing slowly brewing along eventually support for taiwan will lower over time, both because it loses value while the cost of supporting it constantly rises. While it is cheap for china to fly a few jets by every now and then and do some excersises to keep up the pressure. Going for active conflict will only put china in the same situation as russia. Why would they want to do that. Their entire strength comes from abroad. If thats cut off it will collapse into itself. China knows exactly what it is doing and how to get what it wants.
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The usa has a treaty with ukraine that it would ensure it's security. But it has decided that ukraine is not valuable enough to start major war over and basicly let ukraine fend for itself. If china can lowers taiwans value enough that major conflict over it no longer is worth it, china has what it wants. And supporting taiwan will be far more difficult the ukraine. Ukraine has major logistics links with europe like rail and the ability to set up support hubs right across the border. Taiwan has nothing like that, it is an isolated island far away.
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@HJJ135 sure, over time that will become easier. And if they can get away with it that way they'll prefer that. Doesn't change anything really though.
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