Category Archives: defense policy

Go Ahead On

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IBM was interested in buying the Israeli chip maker, Tower Semiconductor, and the acquisition might have raised antitrust concerns in Israel, the US, the EU, and elsewhere around the world. Each of those antitrust concerns, if acted on, would have had effect only inside the nation raising the concern, however, making the matter purely a business decision whether to go through with the merger and simply not do business in the objection nation. Nobody objected, though, except the People’s Republic of China.

The PRC’s State Administration for Market Regulation balked and withheld approval, so IBM meekly quit the deal altogether, apparently in order to appease the PRC and preserve—IBM hoped—its other business concerns there.

Slow walking or outright blocking tech and other mergers with, or acquisitions by, American companies is part of the PRC’s economic aggression against us as that nation objects to our objecting to the PRC’s economic aggressions and to its tech and intellectual property extortion and theft. IBM is working, it seems, at cross-purposes with our struggle against the PRC.

Other moves by the PRC have included blocking

  • Qualcomm‘s acquisition of Netherland’s chip maker NXP Semiconductors
  • DuPont‘s acquisition of electronics-materials specialist Rogers Corp, an Arizona-headquartered company
  • certain PRC domiciled companies from buying memory chips from US chip giant Micron

It would have been better for IBM—and those other companies, too; IBM‘s managers don’t have a lock on timidity—to proceed with the acquisition and to eliminate the PRC’s antitrust concerns by not doing business associated with the acquisition’s chips inside the PRC or with businesses domiciled inside the PRC. Or for IBM, et al., to stop doing business with the PRC altogether.

It would have been a beneficial twofer had IBM gone ahead on with the acquisition: IBM and Tower merge, Israel, the US, the EU, and most of the rest of the world would reap the benefits of the merging, and IBM and Tower would be out from under the PRC’s regulatory thumb.

It would be beneficial for our nation, too, if the managers of our businesses had the courage to stand up to our enemies and walk away from them.

Chip Manufacturing

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The Biden administration is bent on bringing computer chip manufacturing back into the United States. On its face, that would seem beneficial. However, the administration team he’s formed to oversee the matter and its $39 billion of taxpayer dollars allocated to the program is populated with

investment bankers, private-equity investors, and management consultants.

And apparently no chip engineers or anyone familiar with supplying chip factories.

Uh, huh.

The Manhattan Project and the crash program to develop treatments for the Wuhan Virus were populated, strongly preferentially, with experts in the field, and they just as strongly deemphasized the moneybags experts.

That’s not the case with Biden’s nightmare dream team of money allocators. This isn’t a true crash program, certainly, but it’s still an effort to rapidly guts something up. It needs experts in the field to do the gutsing, it does not need politically connected money handlers.

Biden’s Tightrope

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That’s what the editors over on The Wall Street Journal calls President Joe Biden’s (D) move to bar US investments in certain People’s Republic of China technologies and enterprises.

President Biden’s executive order on Wednesday restricting US investment in Chinese military technologies tries to balance national security and business interests. The problem is that Beijing doesn’t distinguish between the two, which is why business risk in China is rising.

This is the fallacy of the editors and of Biden: since the PRC does not distinguish between national security interests and business interests—does not separate out military utility from civilian utility—when it comes to technology there is no balance for our government to seek. All tech, in the PRC’s eyes, has military utility, therefore all tech American businesses and those of our friends and allies might sell or otherwise transfer into the PRC has military utility, and all such American sales and transfers should be barred, and those of our friends and allies should be jawboned against. The transfers threaten our national security as well as that of our friends and allies.

The White House concern is that the Communist Party will weaponize US venture and private-equity investment in technologies such as artificial intelligence.

In a heartbeat the CPC will. Biden’s bar reflects some understanding of PRC President Xi Jinping’s avowed goal, which he facilitates by eliminating

barriers between civilian and commercial sectors and military and defense industrial sectors, not just through research and development, but also by acquiring and diverting the world’s cutting-edge technologies, for the purposes of achieving military dominance.

But then Biden shied away from taking the full step.

open global capital flows create valuable economic opportunities and promote competitiveness, innovation, and productivity.

And:

Auto makers will still be able to invest in Chinese self-driving systems. Drug makers can join with Chinese companies to develop new drugs.

Never mind that self-driving technology has obvious uses in the PLA’s mechanized/armored ground forces, the PLA’s air forces, the PLA’s naval forces. Never mind, either that the tech used in developing new drugs supports the PLA’s ability to develop drugs for treating PLA diseases and casualties and to develop drugs and other biologics for offensive use.

The editors join him in that failure to follow through:

A complete de-coupling of the US and Chinese economies probably isn’t possible, or desirable, given their interdependence.

Yes, it is, and it’s more than desirable, it’s critical to our national economic and military security, and so to our political security. There will be some economic disturbances as our businesses relocate their supply chains—from ore and minerals in the ground up through final assembly components and end products—out of the PRC, and there will be some economic disturbances as our businesses buy and sell technologies with other customers than the PRC. Those temporary disturbances, though, need to be balanced against the long-term costs of being dominated by the PRC.

There’s no tightrope here, except in Biden’s timidity.

Misplaced Push

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Too many Republican Senators are joining their Senate Progressive-Democrat colleagues in pushing Senator Tommy Tuberville (R, AL) to drop his blocking of President Joe Biden’s (D) military appointments and flag officer promotions.

Tuberville is holding up—not blocking—final confirmation votes on those appointments and promotion lists over SecDef’s insistence on using taxpayer funds to pay for abortion and abortion-related services used by military members and/or families.

Tuberville isn’t holding up anything; he’s merely blocking blanket moves to use unanimous consent for approval. Senate Majority Leader Chuck Schumer (D, NY) and Senate Minority Leader Mitch McConnell (R, KY) readily enough could bring each of those appointments and promotion lists to the Senate floor for votes, but they refuse. Apparently, they want, instead, the spectacle of the holdup.

That’s a minor point, though. The larger point is SecDef Lloyd Austin’s stubbornness in demanding that those tax dollars be used for abortion services, Hyde Amendment be damned, on the legal front, and he just doesn’t care about those babies’ lives on the moral front.

If Austin wants his promotion lists, and if Biden wants his appointments, all they need do is remove their demand to spend our money on abortion services and on abortion.

It’s that straightforward.

Biden’s Ongoing Betrayal of Ukraine

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The lede in the Wall Street Journal article says it all.

The slow pace of Ukraine’s counteroffensive against entrenched Russian invaders is dimming hopes that negotiations for an end to the fighting could come this year and raising the specter of an open-ended conflict, according to Western officials.

The terms of negotiation have been clearly, and repeatedly, stated by Ukraine’s President Volodymir Zelenskyy. President Joe Biden (D) has steadfastly ignored them, as he’s more terrified of Russian President Vladimir Putin than he is supportive of actual Ukrainian victory, territorial integrity, and national sovereignty.

And this, in the immediately following paragraph:

A potential stalemate would test President Biden’s stated strategy of pouring billions of dollars in military aid into Ukraine, to enable Kyiv to negotiate with Russia from a position of strength.

It’s a stalemate created entirely by slow-walking—and outright blocking—delivery of the weapons, ammunition, training, and logistic support the Ukrainian defense establishment needs to win quickly and decisively. It’s a stalemate proximately created by Biden with his refusal to deliver the weapons and ammunition the Ukrainians needed to begin their offensive last winter. Instead, Biden’s timidity in front of Putin delayed the Ukrainians’ start for months, transferring to the barbarian, instead, those months for him to prepare his present defenses.

Then there’s this bit of despicable-ness in the article:

The US stay-the-course strategy holds some risks, however.

There should be no such strategy, and there never should have been. There should have been—and there still should be, with very good effect—a constant acceleration of delivery to Ukraine so that it could have, and still could, win decisively and quickly. Instead, Biden is perfectly happy to have Ukrainian soldiers and civilians, including women and children, bleed and die for Biden’s battle between democracy and authoritarianism.

It’s also an immediate Ukrainian battle for national survival, for Ukraine’s very existence. But Biden doesn’t care about that.