tv Inside Story Al Jazeera October 10, 2022 8:30pm-9:00pm AST
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given the opportunity to show their capabilities and also to unleash their talents and put them habersham. and ca, hang was to say every other business vietnamese sports is the key to the whole world. through sports i can have a voice. well sir, i sat there and i have an outlet from a negative energies as well, and assaulted al am in atlanta. i ought, faultlessly. and that my message to the world is that we are the children of palestine deprived of our full rights. for example, the right to play, we do not have enough playing fields. even the one we train on is asphalt ground, and it is very dangerous. however, we never give up. when we travel to play against teams and other towns, we have to go through roadblocks and search measures that we faced many, many harsh difficulties. these really occupation forces are turning our lives into a nightmare. in la la la la. hi, aliyah. i will maribel. this is the 1st time for me to travel abroad and to be on the plane. so i have mixed feelings of excitement thrill and fear. but it is also the 1st time for palestinian children to take part in this event. so i am excited
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to be the 1st to represent palestine. it is an unprecedented opportunity on left. if i was a kid actor, i will invite the other teams to come and visit. if not, we will make friends who will establish contacts and relationships. and one day in the future when we will meet again, some philosophy. ah, this is audra 0. these are the top stories. russian missiles, dogs have been reported across several cities in ukraine, including the capitol cave. the safety emergency services says at least 11 people have been killed. many more have been injured. these occupants to clean up a little nevada was it is impossible not to respond this morning. a mess of strikes took place on air, sea, and land against energy and military targets against ukraine, lose him. if such attempts by ukraine continue, they will be harsh responses with the white house who has condemned russia's
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muscles strikes on ukrainian cities. president joe biden says the u. s. will continue to impose costs on moscow. secretary of state, entropy brinkman's also responded saying the international community must make it clear that russia's actions are not acceptable. the tax of being represented by russia as a response to the attack on the couch bridge in crimea, johnny tanya's reports from the scene. lawful not yet had the up from this boat. we can see the damage to the coach bridge. some of it, as used by cars is now submerged, and fire damage can be seen on the other section used by trains. repairs have been carried out under tight security, including the russian coast guard traffic slowing again, although it is restricted because the nobel prize for economics has been awarded to 3 people for research and banks and financial crises. ben bernanke, him, douglas diamond, and philip debate won the 2022 award. the un high commissioner for refugees is
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wanting armed conflict, human rights abuses and global warming of forced a record number of people to flee their homes. 100000000 people are now displaced. workers and a major oil refinery in iran who stays a strike in support of the ongoing anti government protests. hundreds of our workers walked out of the refinery at us a lawyer. iran has been robbed by unrest since last month, when a young woman died in police custody masa harmony was arrested for breaking rules and wearing headscarf. was the headlands coming up next is inside story. good bye. ah. it is the latest source of tension between the united states and china. president
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joe biden is accused of weapon ising technology for imposing sweeping controls on sales of semiconductors to beijing. what's behind this decision, and how much is it down to politics? this is insights, thought ah hello, welcome to the program i'm hasn't seek a technology is the latest sector to be affected by tensions between the u. s. and china. washington has impose sweeping controls on exports of semiconductors, also known as microchips to beijing. american companies will be restricted from selling advanced chips to china and supplying chinese firms with tools to make their own. department of commerce says it is to prevent sensitive technologies from falling into the hands of china's military intelligence and security services. the
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u. s. has been trying to boost its own semiconductor industry. in august, president joe biden approved $52000000000.00 in federal subsidies for new manufacturing plants and research. china is trying to move ahead of us manufacturing. it's no wonder, literally the chinese communist party actively lobbied against the chips and science active. i've been pushing in the united states congress. the communist party of china was lobbying in the united states congress against passages legislation and the force of some work france and the other team bought it. the united states has to lead the world of producing these advanced chips. this law. busy is going to make sure that it will, what time has accused us of using science and technology as a political weapon may go to you. we also need to maintain it. scientific had too many us to be export control measures to maliciously block and suppressed chinese
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companies. this practice deviates from the principle of fair competition and violates international cannot make and trade rule. it will not only damage and legitimate rights and interests of chinese companies, but also affects american companies interests. and let's take a closer look at why a semi conductors are important to global manufacturing, also known as sammy's, or chips. semiconductors on needed to run nearly everything that has an electronic component from smart phones to cause and military equipment. the global semi conductor market was valued at about $595000000000.00 in 2021 and is expected to become a trillion dollar industry by 2030 countries producing the most semiconductors, china, india, and the us. but technologically, all trail, taiwan that is the most advance, it makes 65 percent of the world's chips and nearly 90 percent of the most advanced . ah, well, let's bring in,
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i guess now to talk more about this from dubai. we have a suki chef street, an associate fellow in the asia pacific program of chatham house, from shanghai, dan wang, a chief economist at hang sang bank china and from london yang, one. a senior analyst had counter points that is a global technology market research firm. good to have you with us. so the suki, if i could start, would you, what's the, the thinking behind this decision by the u. s. in terms of putting the pressure on china. i think one should look at the historical perspective already. the export controls have been used by the u. s. essentially dating back to the boardwalk. right. so you have export controls, mainly targeted of the former soviet union in the 1950s, sixties and seventies,
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which are mainly and stemming. and he advances that the soviet union could make in the andreas vandeveer to really, for obviously the geopolitical context has changed or in this era. and the primary us motiv ish. and you know, last friday decision comfortable comes on top of many, many other this is she's taking the last $2.00 to $3.00 recognition by success, a fish that we and now, you know, technological race and component of that, of course, is an armstrong and primacy of you know, developing these advanced computing capabilities of which, you know, the semiconductor really are an evidence of these technologies who are able to master this will allow you to can logically, edge work with
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a competitive. and in this case, obviously the u. s. thinking mainly of china, right? and want to seen a lot of narrative that these can explore controls are somewhat new. that's absolutely not true. and also if you look at it purely from the perspective of a nation state, trying to protect it's a logical edge. the u. s. is relevant in its rights to impose these export controls. and obviously there extra territories in the sense that us allies who have access to these technology will not be able to transfer them or were to try. right to nazi technical trade conception or why why this is been designed to be interested in design. obviously there's a huge your political context to this. you mentioned taiwan earlier that taiwan is clearly the hub global seneca and are to production. and you know, any country that is april, 1st of all, to protect it flanks at all,
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to make sure that the technologies that produce does not get transferred in this case to china. now the 2nd element of this really is to make sure that the taiwanese manufacturers, they'll be somebody conductance lean more towards the us side than the chinese side . and this is going to be a delicate diplomatic dance, as it unfolds of the next 5 years. and so dan wang, at how do you expect china to react to this? they've already said that this is that the u. s. is, is, is kind of trying its way around here in the semiconductor market to buy yet using it as, as a, as a political weapon. but how do you expect china to expect them to respond to this? well, china has been well aware of the fact the logical decoupling where the us for a long time, so it has been redoubling is to be self sufficient in chip manufacturing. and from
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this point on, we can definitely go back to france that will be taken by the chinese government. one is on the financing of the chip industry in china. they already got a huge financial support, mostly from the city and provincial governments. but the central government has been supporting a large fund trying to develop this. i'm a conductor sector, and the 2nd one is about talon. in the past decade, china has been hiring very aggressively from ty, once, especially from the t s. m. c. to replenish its talent in terms of entrepreneurs, engineers are to develop its domestic sector. but at this point, there has been a bottleneck in the past 3 years on the labor mobility inflow into china has been significantly slowed. and the economics prospect for china has also been much dimmer than before. so there has been some shaken confidence about where china can
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go from this point. if we can keep up its openness in the coming years, then i still believe there is a chance that china can develop quite fast about his domestic ability to produce chips. young, why do you share perspective? i mean, the attention here by the united states is to try and set chinese chip makers back by, by years. could they do that? well, i think the measures that we have seen since last week. definitely. well, you could definitely see the rationale behind the us administration. you look at this from an angle, not just the measures last week, but a slew of policies in, in recent years. you start with what we call the tech war, starting from a band of always a t equipment in 2018 and more recently severe cubs most of your clubs on the chinese tech industry. and more recently restrictions
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on export of us semiconductors and, and the policies from last week we could see even further criminalization of some of the restrictions. and this one includes the sale of semiconductor manufacturing equipment as well as restrictions on plus and now exchanges. so i could say that the, the, the policies have been fairly consistent and that the us administration is really flexing as muscle. and looking deeper and looking deeper into where the values lie in the semiconductor supply chain. one could say that they are landing the punches where they intend to. and the purpose of it is that of course ensuring supremacy of the us leading edge technology and manufacturing. but also to kneecaps china's technological development. suki shasta, is there
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a danger that this move could ignite tensions further between china and the united states? i mean, i think that's a baseline expectation, but this is sparkle, continuing saga that is going to unfold in the next few years. it is, it is the greatest drama and town watching both the u. s. and china attempting to gain a logical supremacy in all of these new area to know artificial intelligence, machine learning which is what the semiconductors and advanced computing capabilities are going to enable. so the question is, are the global rules of the road which will enable the u. s. and china come together, you know, almost like a tree in agreement on the sensitive, technological light and in the room for that seems very, very limited. in fact,
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on the global trading front is very little consensus amongst members of the w t. o to come to any kind of agreement on the global rules of the road. you know, they've tried for many times and all over the past few decades and have not succeeded. so it's very difficult to see any want to defining these prompts for technology as constituting normal, you know, exchange of trade goods and services between countries and the u. a fairly is using that sovereign exception in this case. so no pensions absolutely going to rise. are they going to rise not only in this matter of field of semiconductors, but it is going to have ripple effects elsewhere and no one should really close the watch. the block vincent. i love it, you know, in any case court aggravated after the nancy pelosi visit a few months ago. you,
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let's talk a little bit more about taiwan. we mentioned at the top there how pivotal at taiwan is to the semiconductor industry. it's essentially cornered the market on semiconductors. dan wang, what's, what's the taiwan role going to be in all of this given to the close relations it has with the united states and the fact that china considers taiwan renegades province. but there is, there is an understanding that the china doesn't want to put too much pressure on taiwan because of its dependence of the dependence that it has on, on taiwan semiconductors. while when it comes to the ship manufacturing, china absolutely rely on enforce. and taiwan has been a major source advanced chips for mainland china. and when we look at the competition between us and china, everybody is, we're very clear about what's the end game is. it's basically the transformative
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technology in the future. and china wants to transition its economy from a investment, allow the economy to a consumer base economy. things like e commerce, smartphones, online payments, or even digital money has become very important on chip a which china cannot make. and mostly only can be made by t s. m c would be essential in this transition. and recently we have seen more talk restrictions from the us and that's partly triggered by some breakthrough of the chinese company. because some chinese company has been able, as n i, c, a specifically has been able to getting close to make its own southern nanometers, chip. and the previously, it was already able to make the 14 nanometer chips at a reasonable scale. so one can only anticipate more tac restrictions on china
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right now. the bite and ration is very clear on getting more aligned with allies, including europe, including taiwan, in order to curb their ship exports, to china. and what's gonna happen, maxed. really depend on how much more that abiding ministration is a wedding to do. and on the china side, on the only thing that we can anticipate for sure, is that a work for sure. it will definitely provide more financing, more policy support, and absolutely more talent support for its domestic chick industry. yang. what, what's your take on, on the implications of all of this for taiwan? well, certainly tawan is in a very tight spot. on the, on the we, we have seen for the past couple of years, the geopolitical tensions and also that had and also due to cobra. there was some
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ripple effects over the supply chain. covered disruption is definitely had some huge impact to our industry casing. point some call manufacturers were run the half half of the normal manufacturing capacity. so globally, there's huge demand for the products that come out of t s. m. c is fab's into one. now, kiss m c is a, is a go global company. the reason that it exists is that it tries to take a neutral stance and collaborate with all the other partners, the semi conductor value chain. it's extremely long. it's, it's, it's a very specialized area. all the way from materials design, i p equipment manufacturing packaging. so the reason that yes m c succeeded is not only the on the expertise, but also in the open collaboration attitude it had with customers. so. so
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basically what we are looking at is tier and see and some of the supply chain companies in columns really being squeezed from non market forces. they really have to take. busy very difficult decisions, whether to align with the u. s. driven policies, as well as catering to the, to the markets because been located things i want and close to the some of the biggest customers in japan and korea and in china really benefited them. so if it would come to a place that they had to move some of the assets to other places, it's really, it could be a logistic and financial challenge for them. i'm not saying that they will not do it, but definitely it is one of the concerns for the management. yeah, the suki, i mean, as, as, as yang was saying that there's a lot of interconnecting parts to,
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to the semiconductor industry. and if this policy is going to be, the policy from the u. s. is going to be effective, it needs everybody to do their part, so to speak. that means other countries allied with the u. s. other foreign companies to, to go along with what the u. s is trying to do how essential is that for this to work? well, the us are already introduced, the framework should make the the name reality and then reference to be in the pacific on the framework, the protein signatory countries. digital cooperation is one of the pillows off the best. so in the american condition on this is the absolute, if you would like to share these advanced computing capabilities with lights on very, very strict conditions. no access to this information should not be shared with
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the chinese and you know, embedded in this. obviously it's not only focused on intellectual property and digital issues. there's also a create below bill bit and see how these trade whether it mos into a free trade agreement type of c p t p p. a bit early to speculate on that. but i think the u. s. geostrategic position on this is obviously to rally and mobilize a group of allies normally in asia, but obviously in europe, in the context of russia and ukraine. you're already beginning to see that in order to build this coalition. because many blanks technology and the conductance being one of that. and it is this very broad strategic approach to the u. s. whole will help good again, a technological edge would
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a period of time for what it regards as in door committed by china or the boss to kick and also activations about intellectual property. and so this is a bit essentially taking a cohesive approach in order to address i, let's just take a step back from this for a moment because a lot of people i know will be, will be wondering, what is this all going to mean for things like personal devices, phones and other electronic devices that sort of thing. you know, we could, we talked a lot about military hardware, but how is this going to, is it going to affect it all our daily use of these devices and getting the most advanced one next year and the year after that, let me, let me put that to you a young way price. this certainly is a concern given that we have on our watch a sort of
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a development of 2 different standards. and in terms of the consumer market, i would say in the short to medium term that it is not, not as big issue as expected, because we're in the short term looking at the semiconductor and, and global consumer tech industry. we are now in that downtown, as we can see from the global macroeconomic environment, inflation globally and consumer spending being squeeze energy prices increasing. so we have already seen some key consumer electronics comments. companies coming out with earnings, revisions, capital, capex cups and hiring freezes, which all point to the effect that the market is heading to a down to. and semiconductors being the enabler of global consumer technology. invariably, while field pen tooth. now. so in the short term,
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what we're looking at in this, in this came up the policy reducing demand, reducing supply. but we're also facing a much more rapid reduction into monk. so in the short to medium term, we are unlikely to see a significant change, or at least as much as we experienced during cold times. now, but in the medium to long term, that definitely would be something to think about. because as i, as i mentioned, if companies are having to make decisions to move their assets, capacities, and personnel around it is almost a break from where the current ways of doing things. they need to change their operating patterns. and there will be financial, as well as operational, last involving the and by the nature of the semiconductor and tech value chain. in
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general, it is a very long chain and a lot of things need to go right and know many things. a lot of things could also go wrong. it is already fragile, as we've seen the past couple of years. we definitely can kind of have higher risks coming to the market in the, in the next few years. then when, what if you think this is going to have on consumers? well, we have to remember that the us didn't deny china's access for all chips. it only when it comes to the most advanced trips that will go in smartphones like i phone or self driving vehicles. that's where the export fan happens. so at this point, china is able to increase actually a global and sale and global share of the chips. the suki, what effect do you think this is going to have on personal technology? i think you know, the focus a lot of hardware and i agree that on the hardware things are probably not going to
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change the next few years. but i think when digital standards and software, we already see a decoupling between chinese standards and the rest of the world. and you know, that is going to have a profound impact in the way a beacon view of technology. and in the way the chinese were consumed technology and of course, we know both, these are competing system will be built on cutting edge hardware and software where they're going to have a very different philosophies, an operating system that reflects, of course, why the us and china are in these 10 sheets the 1st place. so this is the company of standard dessert essentially mean doc, you know that the world that we've looked in the past 2 years, it's been seamless, frictionless. baby been able to move from one country to the other with
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a single operating system, but that essentially is going to pick up. and this is what the american moves over the past week. essentially suggest, all right on that we will have to leave it. thank you very much to all 3 of you, the suki. yes tree, dan wang and yang. thanks so much for being on it. so i story and thank you. as always for watching, remember you can see is problem again. any time just go to a website. i just need to talk com and for further discussion, go to our facebook page at facebook dot com, forward slash ha inside story. you can also join the conversation on twitter handle . there is an a j inside story for me has a secret and healthy me like now. ah ah.
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the chinese communist party holds it. 20th congress. delegates will meet to discuss constitutional change, economic challenges, and phone policy with president jean ping likely to secure a 3rd time. will he be given even more power to pursue his vision for the future? follows a story on o g 0. a british political party at war with the labor party is a criminal conspiracy against its members. newly obtained documents were reveal members silenced, suspended, and falstaff. my god, this is unbelievable and free speech was shot down an exclusive
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