[000:00:00;00] the the hi everybody, i'm rick sanchez. you know, i've been doing news now for 30 years to languages all over the world and here in the us and interviewed for president's work that for the u. s. has major television networks been fired by most, hardliners should be honest and direct and impactful, and this is direct impact. the here's the question for you. why was one of the most important leaders and all of us politics spending so much time in taiwan recently? look,

there she is. that's nancy pelosi back in august. and she becomes one of the most senior us officials to go to taiwan in 25 years. it's really clear that while china has stood in the way of taiwan participating and going to certain meetings that they understand, that they will not stand in the way of people coming to taiwan. now despite the door, regardless of whatever, she says about diplomacy and friendship with the taiwanese people, the fact of the matter is this. her trip was all about one thing. and almost one thing only semi conductor chips, semi conductor chips, if that's not the case, why else then that she spent most of her time while she was there dining with the leaders of ts, m. c, the taiwan semi conductor manufacturing company, otherwise known as the world's biggest chip maker, is more on t. s, m, c,

and below c in a moment. but 1st, i want to back up just a little bit to help you better understand how we got to where we are, how we got to the brand of what some are now calling an all out global ship for chips. as you probably know, run everything, your car, your phone, your refrigerator, you name it. i mean i'm talking about just about everything that's made now and just about everything is made in the future. and they're getting smaller and smaller and see bit smaller. so what is it, though, what, what, what, what is a chip? it's a set of electronic circuits printed into a tiny little piece of silicon that 50 or 60 years ago that whole thing would have taken up this entire studio. that's how big it would have been. now it's like this thing right today it's microscopic and it's made of silica. why? because silicon allows it to semi conduct electricity. that's why it's called

a semi conductor. as far as the chips were made in the united states, but, and because the technology was so specialized and so expensive and you know, we didn't want to pay workers here all that much money. the us push the manufacturing base of chips to japan. where then workers there would do it cheaper and besides, they were already expert at making transistors at the time the japanese little tiny switch is that turned on and turn off circuits. almost overnight, japan became the number one designation for chip manufacturing in the entire world . but then the u. s. said not so fast japan. so here's what happens. a seed on the look at these pictures. look at this stuff, look at these images. this is from the 1980s us politicians complained that all the

jobs were going to japan. so many of them actually walked out on the lot of the us capital and started smashing what it, this is sort of smashing toshiba stereos, declaring them the enemy, us trade war with japan was on. so japan is out. so who's in, who's going to make the chips? good question. suddenly the u. s. teams up with taiwan and the to come up with what appears to be a deal from now on taiwan, we manufacture the chips, the fuel, the united states, our tech industries needs a cheaper price. and in return, taiwan is going to get us warships doing military exercises along its coast. and also along the coast of china to send the message to china. it is what the mafia would call a protection racket, right? i mean, this is the credit of a gangster movie. you give us what we need and we'll make sure nothing happens to

you. that's the deal. good deal for both sides, right? i mean, from nat geo political arrangement, the world's largest chip maker, p. s m. c. was born to yes, i'm say the one that but that's the nancy pelosi met with it solved for us as trip problem. and the us is military solved by one security problems with china. i mean, here's the deal. henceforth, taiwan becomes dependent on the u. s. and the u. s. gets all the chips it needs to control the global tech sector so much so that by 2010, 92 percent of all the us chips are made into 192 percent. then something else happens. suddenly, china and it's economy starts the room while this is going on, you know, explosive growth, the chinese star leading the way in the making of teammates and phones and monitors and computers and kitchen appliances. and uh, you know,

automotive parts you have it because all those things need jets. china starts buying up all the chips that it can get a chance on. they become the world's biggest consumers biggest buyers of chance. but where are they going to get all the trips? where are they getting all the ships from here? they're buying them from the united states. but remember, we're getting them from taiwan. so think about that. you know, that means china is building their tech economy by using shapes being made in taiwan. their so called arch enemy, right? which didn't matter when china's economy and military needs were small, but not anymore, they're big. so one day us realizes this, they realized the chinese or out performing us, our company's chinese, u. s. companies and billing, so with chips that we hear in the us are supplying through them. and suddenly

washington has what we like to call a disease. remember when we kick the japanese out of the ship industry? well, here we go again. when the u. s. realizes that china is bidding them and tech development, we freak out. but the real freak outcomes when we realize that china has use this chip technology to develop this a missile. so advanced can go around the world at supersonic speeds and can do so using a technology that makes it undetectable. so china, using our trips is building and selling advance weapons, can you say o in the us has to come up with a way to punish china and punish they do in steps. none other than joe biden and the by the administration. but he's the 1st to do this, but it's starting to become even more aggressive. the bite administration goes all

out with the anti china restrictions that for bid any at all us tech companies from doing business with china. no one is allowed to sell a single chip to china. period. everything is blocked. us firms are forbidden from doing business with china and to make things even more restrictive. no us citizen is allowed to take a job working for a chinese firm. in case you were thinking, i could make more money working for china, but us as no, you can't so much then right for all that, talk about a free market that we always brag about, and how that makes us different from the rest of the person. sorry, china you are not allowed to take part in this free market thing that we always talk about. huh. and speaking of anti free market, both. busy else does the buy the ministration do it? gifts literally gives $50000000000.00 of my money that they take from my taxes to us. tech companies, the ones that make the trips, giving them a leg up

a huge like up on all of their competitors anywhere in the. busy and here in the united states essentially free money, isn't that what we used to accuse china of doing when we say that there companies are communists who are state sponsored state run, etc? sounds a lot like it. and then to see on mr. biden's deal even more. there she is. nancy pelosi in taiwan. the message to china is deliver. and the chinese get it. hello. see is there to tell tie, want to take making chips while also letting them know. we got their backs. call us warships traveling up and down the taiwan straits. we see it like monthly sending an obvious signal, telling china back off, but china is no longer a country with just effect based economy. really now has the world's biggest navy, arguably capable of blockading everything that comes in and out of taiwan if it

wanted to. including think about there's the export of trips which would in essence freeze the u. s. economy. in fact, the world economy. why? because everything that we buy here in america is made the chips. remember what happened with the supply chain disruptions that were caused during cobra. do you remember that, right? do you remember how hard it was to buy a car or anything for that matter? well, if china were to do that, if china were to block a coast of taiwan from getting those chips out of there and going throughout the world and specifically to the united states, experts say it would be $100.00 times worse than the supply chain disruptions that we saw during coven, and that that would be a massive global chip for k j. now is a journalist, a political analyst, a writer, and a teacher specializes in the deal politics of the asia pacific region,

k. j. thanks for joining us. thank you. a pleasure to be with you. what about the i b a that some are conjecturing that china could actually do a naval blockade with its massive navy and said to me that it states, look enough is enough. you live off of these taiwan, these chips. we're not going to let these tiwana chips get to you anymore. how big a deal would that be? you know, it's possible, nothing's out of the realm of possibility. but i think it would be such an extraordinarily belligerent ad that i don't really come in. imagine china doing anything like that. simply china is approach is to trade and to have good relations with the rest of the world. certainly ships on part of it. and the china once peaceful reunification with taiwan island. it's providence that split off through a series of you know,

political pressure is largely due to the us and encouraging and supporting its uh, you know, its ability not to re integrate but, but i think china once peaceful reunification and i cannot imagine something like that happening okay, well one thing is what you want k j and another thing is what you get. and it seems at least to hear china tell it that all is gotten from the us is a taking the teeth consistently in many, many, many ways. and at some point, they're just going to have to say, look, eyes enough is enough as well. you know, this is true. go ahead. as i said, you know, china once good relations, it's the us which is escalating in what i refer to as hybrid more. and this hybrid war involves check war, trade, war, financial, worse and legal was that information warfare. political marcia,

as well as massive encirclement with bases and this constant drumbeat of military exercises that are becoming more and more threatening. so suddenly china is not getting any of the results that it wants from its engagement from the united states a best. the us just plain jekyll and hyde, oh, good cop, bad cop with it. but still, i can't imagine that the us, the china would try to embargo us uh, access to taiwan. these trips there. many steps that we take and long before that. yeah. you know, speeches, you know, holding back right or with minerals or, or simply refusing or simply sanctioning us corporations the same way that the sanction chinese corporation. by the way, k j i was reading and i just shared with our listeners and viewers a little while ago. that there are some experts who predict that if china didn't do that, i'm not saying they're going to. but if they didn't do that, it would be

a 100 times worse than the supply chain disruptions that we saw during co. so of course, i mean that's a supply chain disruptions during cold with what caused by, you know, a factory slowing down or shutting down, you know, and that was something that eventually was manage. but the simple fact is that the united states is so deeply in mashed with china's economy gas on stuff it's industrial supply chain. most of its industrial manufacturing is done inside of china. and if you take, for example, your average call, your average car has about 30000 different components. your, you know, you'll find a jet has probably 350000 components. and i assure you, a large number of those components are manufactured in china. and so that's why the coupling or even this you from is a, be risking, is actually extraordinary full. how do you think?

but the united states seems to be firmly set on this. and what it's trying to do is it's trying to decouple and it's trying to farm out, certainly it's military, industrial production to japan, to australia now to india. and of course, to south korea. thanks so much k j stay right there. we're going to come right back in just a minute, by the way, i should mentioned to you that we can continue this conversation. all we gotta do is go over the twitter handle. there's rick sanchez, tv, where we can talk about some of the same things that we're talking about during this particular show. i'll look for you there. now when we come back, the us kicks out. china, as we just explained, is now stepping in and saying, okay. and how about as we become your china alternative will be right back.

the look forward to talking to you all that technology should work for people. a robot must obey the orders given by human beings accept. we're such orders at conflict with the 1st law show your mind, anticipation. we should be very careful about our personal intelligence at the point, obviously is to trace a truck rather than to the area with artificial intelligence. we have somebody with him and the most protects. his phone existence was alexis. on july the 8th 1941 german troops ended in

a stony or from the south soviet soldiers and civilians for the enemy courageously on the stony and soil go with thousands of casualties filled up the federal home to us point 04, we are giving you 50 feeling it, but i'm not sure if our cuter what city of even a z is. beauty we bought the we is pushing that during the years following the soviet victory. a large number of monuments loveless and burial sites were rented to on of those who had fallen in the wall to go get the bombing vs. which way the another. however, recently, many of them have either been demolished vandalized or completely neglected. so we sold the but the of those who do the best of it was the ones who left to the memory. so as to prevent we write history and we make consciousness profile for the

labs. the american voters are rarely interested in the world policy during election cycles. said the issue between maybe the exception this time around, particularly among t o p voters, much of the republican base a cell or down the brain policy. they see it is by the, by the way, there is something else going on when it comes to the geo politics of chips. india has now begun to a sort itself as the alternative to china when it comes to the manufacturer of sunny conductors. it is a balancing a $10000000000.00 incentive plan to boast, semi conductor manufacturing in the country. by the way, they've tried this before in india, and i've not been able to pull it off, but with is paying more now between china and the us when it comes to all things

tech. some think maybe this time it could be different that we're back now with do you have political expert, author, analyst, k, j? no, i could probably come up with all kinds of descriptions for him, but i think it is good. okay, good. thank so much. you're a big with us once again. a pleasure to be with you. let's talk about india real quick. so in the i just as come out recently and said look, us china, you guys can't get along. and apparently the us doesn't want china involved in the whole chip, manufacture, trade industry. and they're saying we are now willing to step in and because the alternative to china, and we're going to put our money where our mouth is, art body and his government are offering $10000000000.00 to bootstrap or take start, i guess i should say the chip industry in uh, in india. what do you make about? and i think it's going to be a heavy list, you know, chip so extraordinary,

lee complex to build a skilled manufacturing is not easy. remember t s m c has tried to build fads in arizona. it's, you know, it's being encouraged with, you know, $50000000.00, you know, a bonus to create a fab in arizona, and it's having a lot of trouble. so that's inside the united states was already the technology, the support of the infrastructure and even the workers. so i think it's going to be even harder in india, countries that have shifted to all the countries outside of china, for example, to vietnam. southeast asia have had difficult transplanting the ship industries. and i think it's going to be a heavy list, but i think it's very important to note that this is happening because as i said, the united states wants to decouple from china. it wants to create a supply chain that is independent and in close supply chain that is outside of china. and

a lot of it's kind of military industrial production will be done in india, korea, japan, and australia. let me ask you the question this way. uh, in regards to what i mentioned a while ago before the break where i said this, i was fascinated by this conversation with between she and blinking, where she essentially set the blinking look. i mean, you can keep doing what you're doing, but there will be consequences. and this thing can become conflict at some point, given your recent track record, which i thought was interesting and those are his exact words. but i think that was the gist of what he was telling them doing. do you suspect that the u. s. will take that message and react accordingly, or will they not react at all to that warning for mr. she presidency? well, the us has all ready react to essentially how it's reactors. it's told china that

you, it's told china that we don't care what you think and immediately after, by then called she a dictator blinked and i found it be said that, you know, this is what we all think and feel, and the us as continue to escalate the same thing with uh, you know, the defense minister, they said they wanted direct meetings, direct communications with them. at the same time, there was sending a ship through the taiwan strait in this very belligerent passage. so he uses plain jekyll and hyde explained good comp and bad call. it, you know, makes nice. and then immediately the next day it turns around and it does something aggressive violating abusive from china standpoint. it's like a cycle of domestic violence, except it's not a cycle, it's a spiral and that spiral is spiraling downward towards kinetic for not withstanding the chip situation in and of itself. that friction, mat aggressiveness that you just so well described to us. um,

how long can this last before it becomes a worse or possibly even, you know, some kind of conflagration between our 2 nations. well, i'm very worried about that, greg. i think you put your finger right on it. and i think that this is the most dangerous thing we're facing, that we're right on the premises of genetic war blankets meeting was she was a kind of, i think, a last good faith efforts by the chinese to see, can we reset things, should we reset things to the bottom, the baseline to body baseline was medium machine and a by done in bali last year and they're biting, agreed that we're not engaging in a cold war. we're not trying to suppress china's development. we're not building alliances against china. we're not, we, we don't want more that was a such and we were respect. china is sovereignty over taiwan island. those were the

agreements. they changed to this agreement and the chinese assumed in good faith that this was the baseline from which they could start from. but clearly, every single one of those understandings has been violated were continually escalating. mine has only blinked and has only paid lip service to this. they need it. he left the meeting, turned around and started to aggress. and uh, you know, this trying to again, and i think this needs that we're very, very close to the present this a more it is not an optimistic situation. boy, let us hope you are wrong. um, by the way, final question only cuz as you may know, i was born in cuba. there has recently been reporting that uh, china is uh, creating some infrastructure locales in cuba itself, 90 miles away from the united states. what do you make of that and can you confirm it or do you believe it or do you think it'll lead to anything as well? you know, i don't have intel on the ground,

but i do know that there's several um journalist uh and uh, news agencies of being on the ground. they've asked people left right and centre all around the place and they've all said there's no such thing. there's no such face, it doesn't exist. that's the people on the ground. and then the foreign ministry of tube, i said no, there is no base. the chinese upset. no, there is no base. so i think this is just kind of projection. there is a country that does have a foreign base on cuba, that is the united states. the base is called one time where i'm human rights violations are routine. if china did want to build a base, the 1st place it could and should build a base is in north korea where once again the us is very close to genetic war with china and north korea as a direct border with china. and it also has a mutual defense treaty, the only country in the world, which has a mutual defense treaty with china is known as grace. so that would be the 1st

place to build a base not in cuba. your inside is a amazing k j and you obviously are someone who understands the situation and thinks through it and reads. and i would encourage anyone to reach out to you or get your materials because you know this stuff. thank you so much. k j. now. thanks for your time here on direct impact. hey, before we go, i want to remind you of our mission. it's simple really. i would love to be silo the world. we've got to stop living in these little boxes where this side doesn't talk to the side and only knows what it knows. but that was a nolan. left truths don't live in boxes. truth is everywhere. how much is it? somebody looking for you again, right here for i hope to give you

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no problem listed in the cause, the issue was uh, but now it shows that i was able to think you're going to finish your settings. for the us, you will see the apartment the passcode go while i'm watching the course board of the united use of the liberation of a stone inland from the nazi invaders began with an attempt to break through the mainland strongly or in february 1944 into like 44 in, in good front forces conducted the non offensive, which confronted a serious defensive line. so that the killing of the i'm not sure the policy or what city of even a z is being we bought the what is portion of the such element the force you to in your floor not blocked us. it took up to him, was a bu, a 0. not a problem, ma'am. so you the money, but i to you, you know, why did we some of these? why the trust really? what was sure it showed them the chest voice would always be private security the