In 2018, the United States initiated a policy banning the sale of high-end semiconductors to China, triggering significant geopolitical and economic shifts. This decision compelled China to prioritize self-sufficiency in critical industries, redirecting capital from real estate to industrial development. Banks were instructed to support strategic sectors, accelerating advancements in semiconductors, chemicals, and jet engines. As a result, China quickly rose as a global leader, becoming the largest exporter of automobiles, solar panels, and industrial robots.
This shift highlights the broader geopolitical dynamics that influence economic trends and inflationary pressures. It also underscores the long-term consequences of the 2018 policy, which sowed the seeds for China’s leap in industrial capability.
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