US Chip Export Restrictions

They’re beginning to bite in the People’s Republic of China, according to “people familiar.”

Shortages of advanced semiconductors are so acute that the government has begun intervening in how the output of China’s largest contract chip maker, Semiconductor Manufacturing International, is distributed, according to people familiar with the matter. Chinese authorities are trying to give priority to the needs of tech conglomerate and national champion Huawei Technologies, which uses SMIC technology to make artificial-intelligence chips, the people said.

Say the report is accurate, the mythical nature of the source notwithstanding. What is the PRC doing about it besides allocating domestic production from the center?

Up against restrictions, some semiconductor companies such as Shanghai-based MetaX are designing chips on older, more available technology, bundling two or more smaller chips together to compensate for more limited computing power. Bundling strategies at Chinese companies have resulted in electricity-guzzling data centers, prompting multiple local governments to start subsidizing their power bills, people familiar with the matter said.

And they smuggle American chips that have been banned from export to the PRC. The PRC also will solve its data center energy problem.

The correct answer to this, though, is not to remove the export restrictions. The correct answer is to do our own workarounds of this type, learn the details of the PRC’s workarounds, and learn how the PRC solves its own data center energy shortage problems at the same time we work out solutions to our own data center energy shortage problems. Doing that would better prepare us for future such shortages, and it would enable us to better target restrictions on American goods, not just chips, headed for the PRC, whether directly or via third (and fourth) party nations.

“How on Earth is that a Problem?”

Harvard has awakened to its problem with grade inflation, and the students it has admitted are having their own problem.

A recent internal report found that Harvard is dishing out too many A’s, and that the current undergrad system is “failing to perform the key functions of grading” and “damaging the academic culture of the College more generally.”

In an honest grading system, taking a letter grade scale of A-F, where A is best, F is failing, and C is average, it wouldn’t be the case that a school, much less an allegedly elite one like Harvard, would be dishing out too many A’s. Under such a grading regime, the large majority of grades would be C’s—after all, the majority of a population clusters around some measure of average, whatever the population is. Maybe 10% of students would get A’s and 10% would get F’s. The rest would be roughly evenly distributed between B’s and D’s.

The grades lower than A would (or should) be spurs to work harder and do better. Those getting F’s would be candidates for dropping, or being dropped, out of Harvard and so no longer wasting their parents’ money.

Consider some numbers reflecting the level of effort Harvard’s students put into their classes.

The average time students spend studying outside class has barely changed, from 6.08 hours a week for each of their courses in fall 2006 to 6.3 hours this spring, according to the report by Amanda Claybaugh, Harvard’s dean of undergraduate education.

Let’s assume a heavy class load of four classes, each meeting three times per week for an hour and a half for each meeting. For spring 2025, that works out, according to my run-of-the-mill third grade arithmetic, to some 18 hours per week in the classroom. Those 6.3 hours per week per course on “homework” works out, according to that same arithmetic, to 25.2 hours per week of homework. That sums to 43.2 hours per week on classwork.

That’s an outer bound. When I went to a top-drawer private college, I took four classes per week, but those that met three times per week met for one-hour sessions. The classes with hour-and-a-half sessions met only twice per week.

Oh—the strain.

The nature of the students’ problem is made plain by this plaint from one student:

You admitted these students because they have straight A’s, and now they’re getting a lot of A’s, and it’s, like, “This is a problem.” And I’m thinking, how on earth is that a problem?

What these Precious Ones need to understand is that they’re no longer competing with run-of-the-mill high school students for grades. Now they’re competing with a much higher, much more capable, collection of students, students who really are their peers. It’s a different population than the one of which they were members in high school. Of course the grade definition of “average” has gone up, as has the grade definition of “superior” and “best.”

What Harvard’s managers, and especially its teachers, need to understand is that, after explaining this difference (which should be obvious to the students; they are, after all, the cream of their high school classes), there’s no need to discuss the matter further. The students who can’t handle the new regime of grading—being expected actually to work for their A’s—need simply to be dropped from the school.

Waffling Weasel Words

Recall Heritage Foundation‘s MFWIC Kevin Roberts’ full-throated and enthusiastic embrace of Tucker Carlson who did his own bearhug of antisemitic, racist, and misogynist bigot and Hitler fan Nick Fuentes. Roberts’ behavior has badly—perhaps irrevocably—damaged the Foundation. Now Roberts is further demonstrating his unfitness. Regarding his embrace, Roberts began with a pseudo-apology.

That didn’t play well anywhere, so he fired his chief of staff who wrote the statement he read into the camera.

That didn’t work, either, so,

[H]e blamed the audience: “Not as many people as I thought were ready for a little bit of nuance[.]”

No, wait—

Roberts changed tack. “Sometimes you can make a mistake with the best of intentions,” he said Monday. “My mistake was not saying we aren’t going to participate in cancel culture—we’re not. My mistake was letting that…override the central motivation that I had,” which was “fighting against antisemitism in all its forms.”

The Roberts doth waffle too much, methinks.

It’s time for the Heritage Foundation to terminate Roberts for cause. If it will not separate him from the Foundation in any manner, it’s time for the rest of us to put the Foundation away from us.

“Career-Defining”

The headline lays it out:

Chief Justice Roberts Faces Career-Defining Decision on Trump

The WSJ‘s news writer centered his headline claim on the current Supreme Court case that concerns the authority a President has (or has not) to unilaterally adjust or apply de novo tariffs. This is certainly a major case with serious implications and outcomes. Career-defining, though? Calling it that is nothing but journalistic arrogance. This guy is not the definer of “career-defining;” he’s just one man with an opinion.

Career-defining certainly would be a momentous move with long-lasting effects.

Here’s another momentous move by Roberts, one from a few years ago, and that still is reverberating. That ruling, in which Chief Justice John Roberts rewrote the Affordable Care Act to include a tax aspect that Congress had explicitly considered and just as explicitly rejected, was every bit as momentous as anything the Roberts Court might decide regarding Trump’s tariffs. Career-defining? At least as much as the tariff case. That’s my one-man opinion.

Be Still, my Heart

Visa and Mastercard, two of the largest credit card issuers, may be reaching a deal with merchants over fees charged merchants. This could settle a dispute that’s gone on for two decades.

Under terms being discussed, Visa and Mastercard would lower credit-card interchange fees, which are often between 2% and 2.5%, by an average of around 0.1 percentage point over several years[.]

A whole tenth of a percentage point. That miniscule fraction adds up, some, over many years, for the card issuers, but it does nothing for the individual merchant—or the merchant chain.

To put that magnanimity in perspective, imagine an investor—one of those merchants, perhaps—investing in an instrument that grows at 0.1% per year.

Were he to start with a $10,000 investment, after 10 years, his pile will have grown to $10,100.451.001. After 20 years, the duration of the current dispute, he would have a $10,201.91 golden egg.

Be still, my heart. With friends like this in the merchants’ world, I’ll continue to do business, as much as possible and especially with local mom-and-pops, in cash, which lets the merchant keep all of the money I’m paying for his good or service.