This article discusses a recent charge that has been raised to the attention of the public in relation to China and the US. It was just discovered that three Chinese Nationals as well as one American have been caught smuggling NVIDIA and HP chips from the US to foreign countries in order for them to eventually be shipped to China. The charges have not been sealed by the department of justice yet but statements have been made suggesting that the men allegedly made shell companies in order to purchase the chips and were to receive kickbacks for the work. This is following a ban from the commerce department from China to acquire these chips.
This article is very important because it is informative to the reader on a current event that has just happened. This could have significant implications economically for both the US and for China. The US has been actively trying to prevent these chips from reaching China in addition to their other sanctions and tariffs that have been imposed with the goal of stepping up against China economically. This has proved largely ineffective as China’s economic output is much greater than the US and thus can much easier fight against the US sanctions or tariffs.
The main stakeholders are the United States and China. China has not directly played a role in this illegal activity by these nationals so the government’s net move largely depends on what the United States does to the 3 nationals. For the US, it would make the most sense to likely prosecute these people for the activity they did but they must do so in a way to avoid stirring any direct conflict from China. These nationals as the final stakeholder best search quickly for lawyers in order to protect themselves as it seems there is significant evidence against them.
This instance relates to security as a national issue because these people have managed to slip these chip exports through the cracks and thus been able to bypass the security measurements that have been in place by the United States government in hopes of avoiding this from happening. Additionally, this connects to economic interdependence as this is the result of economic conflict between the United States and China over these chips and innovation. Additionally, the chips were to be smuggled through third party countries exemplifying that even illegal activities require a level of interdependence.