the, the good the, the hi everybody, i'm rick sanchez. you don't have to do a news now for some 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. 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 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 the cmc, the taiwan semi conductor manufacturing company, otherwise known as the world's biggest chip maker, the more on the 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 good, what some are now calling an all out global chip 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 it's made in the future. and they're getting smaller and smaller and see bit smaller. so what is it the, what the, 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 big 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 semiconductor. that's ours. 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 them workers, there would do it cheaper. and besides, they were already expert at making transistors at the time of japanese. there's little tiny switches that turn on and turn off targets. 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 as seen 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 industry's needs at 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 that geo political arrangement, the world's largest chip maker, g s m. c was born to yes, i'm say the one that but that's the and that's the velocity met with it's solved for us as chip problem. and the us is military solved by one security problems with china. i mean, here's the deal. henceforth, i want 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 started leading the way in the making of teenage and phones and monitors and computers and kitchen appliances. and uh, you know, automotive parts you have it and because all those things need jets,

china starts buying up all the chips that it can get his hands on. they become the world's biggest consumers, biggest buyers of chips. but where they're going to get all the chips, where are they getting all the chips from here? they're buying them from the united states. remember, we're getting them from time on. so think about that. you know, that means china is building their tech economy by using shapes being made in taiwan here. 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 realize the chinese are out performing us, our company's chinese u. s. companies and doing so with chips that we hear in the us are supplying through them. and suddenly washington has what we like to call. busy of physics it

remember when we kick the japanese out of the chip industry? well, here we go again. when the us 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 on this a missile. so advanced, it can go around the world at supersonic speeds and can do so. here's the 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 divided ministration 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 block 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 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, what 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 chips, giving them a leg up, a huge leg up on all of their competitors, anywhere in the world. and here in the united states,

essentially free money. isn't that what we used to accuse china of doing when we say that their 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. polosa is there to tell tie, want to kick, making chips while also letting them know we got their backs. call us for ships traveling up and down the taiwan straits. we see it like monthly sending an obvious signal telling china us back off, but china is no longer a country with just a tech 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 this, 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 coven, you remember that? right? 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 cove it and that that would be a massive global chip. one 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. thanks for joining us. thank you. 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 saying that the united states look enough is enough. you live off of these taiwan, these chips. we're not going to let these taiwan these 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 at 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. 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 tech war, trade, war, financial, voice, and legal work that information warfare, political moisture 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 as best the us just plain jekyll and hyde. oh good, call back up with it. but still, i can't imagine that the us, the china would try to, in, by go us, uh, access to taiwan. these trips there many steps that we take and long before that. yeah. uh, 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. of

course, i mean that's a slight change disruptions during co. what caused by, you know, uh, factory slowing down or shutting down. uh, you know, and that was something that eventually was manage. but the simple fact is that the united states is so deeply in mashed when 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 show you a large number of those components or manufactured in china. and so that's why the coupling or even this you from, as of di, risking is actually extraordinary. it's full hardy thing, 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 to twitter, my handlers, 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 to us, kicks out, china, as we just explained, is now stepping in and saying, okay, how about if we become your china alternative? we'll be right back. the,

the, by the way, there is something else going on when it comes to the geo politics of chips. india has now begun to 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 uh, do you have political, expert, author, the analyst, cage. i know i could probably come up with all kinds of descriptions for it, but i think it is good. okay, good. thanks 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 of 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, 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 been encouraged with, you know, $50000000.00, you know, 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 other 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. do you suspect that the us 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 have 3 actors. it's told china that you, it's told china that we don't care what you think and immediately after by then called a she, a dictator blinking funded. he 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 uh, through the taiwan strait in this very belligerent passage. so they use this plane, jekyll and hyde explain 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 starting point. 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, that aggressiveness that you just so well described to us. um, how long can this last before it becomes a force 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. the, 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? can we reset things to the bottom, the baseline? the body baseline was medium machine and abiding 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 agreement, stake, 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 asked people left right and center 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 2, but that is the united states. the base is called one, tell them all 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 cage 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 is 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 it should be looking for you

again, right here for i hope to give you a direct impact the the,

[000:00:00;00] the the on august the 26th. we will celebrate safety and the as of the independence of a policy and self assess. yeah, dr. thoughts assist uh do of these 2 dates, august the 26th and august, the 8th. have a special significance for you. i believe it was around the tenants. if to the military responds a obviously these dates are significant to me, but not just to me. they are important for the people living in the republics that

were not recognized at the time. the conflict broke out on august 8th, 2008. it was caused by george's aggressive actions and policies and russia had to react. august 26 is the day when those territories were recognized as legal, international entities, subjects of international law. a lot happened in that short period of time, let's say 5 day war and peace enforcement for georgia discussions about what to do next. and then my presidential decision to recognize the republics as subjects of international law. it to me, therefore, these dates have a special significance for the people of the 2 republics that we have been developing friendly and peaceful relations with. since then. with that, i mean voices in 2000 and they to try to convince you not to take those steps. brushing politicians diplomats international colleagues, perhaps regarding the police enforcement operation against georgia,

recognizing the independence of the 2 republics. whether there was no other choice left, we had to go with the military response because georgia attacked sell bassetti. and there were hundreds of victims, including our peacekeepers who were stationed there with a mission to maintain order. so we were out of options. that is my 1st point. as for someone trying to dissuade me, that was not an issue, because it was only a few hours between georgias attack and the decision that i made as commander in chief, no consultations on the subject were held. there was an act of aggression and we reacted. had we taken our time with the decision? the consequences would have been much worse. and the conflict would have been drawn out, despite the fact that georgia as military power couldn't compare with that of the russian federation. as for recognizing a plaza and sell the city as independent states and subjects of international law,

i discussed it with the security council. we weighed all the pros and cons and made the decision. and this decision has stood the test of time on the way the international community was surprised by it. but at the same time, it was expected because everybody knew that there was no turning back, no rush. it had to protect those territories, sign an agreement with the put military bases there, defends the interest of the people to guarantee peace and security. so those decisions were not easy to make and your board. but today i met with the leaders of the republics. we discussed everything and confirmed that those decisions haven't done yet. so the test of time and also to everybody usually focuses on what was that you want, but it is also important to look at what was prevented fish. and when you on the russian federation made the decision to get involved in this house, instead of the conflict,

what sort of negative scenarios did we prevent and we bought it. i think it's obvious that the most important thing we prevented was more casualties. this is key in any kind of armed conflict to us. if we hadn't reacted militarily, use the massacre. the killings by georgia would have continued. there were already many victims at that point, including our peacekeepers. and clearly russia had to react, stopping the blood. shit was the most important objective less than that and securing piece of course sell to city and deposit. you have been peaceful territories since then. protected by russia are very nice. yeah. well, it's a joke. and now, 16 years later. so what do you think about the development of a policy and self concept cmt power versus relation with those 2 stage sickness? and do you think more conscious would recognize their independence in the future? we would assume we always want more of course. but if we compare the situation in