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this post was submitted on 31 Jul 2025
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the chinese have the ability to cripple nvidia via its control of rare earth minerals combined with sanctions and i wish i could understand why don't use this leverage.
It's more than just control of inputs. China is a huge market for chips, and it would be a massive blow to nvidia to lose access to this market. Their revenue would go down significantly as a result. On top of that, Chinese companies are already catching up to nvidia, and they're going to compete on the global market soon. This is the real nightmare scenario for nvidia, because the same thing will happen that we saw happen with stuff like EVs and solar panels. China is going to flood the world with much cheaper chips that are going to be as good or better than anything nvidia can make. At that point, nvidia is looking at a collapse of their global market share. The west will ban Chinese chips, but the rest of the world won't, and the west on its own is just not big enough of a market.
oic, more long game strategy.
let's both hope it bears fruit before the american gov't decides to employ its nuclear weaponry advantage; launched from filipino, japanese, and south korean military bases.
I've started to understand that if China is doing something that makes me go, "why aren't they doing the most obvious thing I can think of" then it's probably answered with any one or more of the following: de-escalation to build up more alliances via mutually beneficial trade (see BRICS), long term self reliance strategies (with the end goal of making western offerings uncompetetive long term), or just not wanting to kick off a global nuclear war via antagonism of the USA
their responses are definitely more measured and my americanized brain keeps going "wtf" whenever they don't exact retribution like the american gov't does.
yeah, that's the big worry