Little Chips On Their Shoulders

Sometimes there's an upside to politicians not keeping their word. Biden's $2000 check promise? Debatable. But now his election run blustering about keeping up economic pressure on China and "decoupling" is starting to look like so much speaking loudly with a small stick.

The key driver for staying "coupled"? Microchips. Both Covid and Trump's hardball tactics not only sent Huawei into a tailspin, but also roiled global supply chain.

Microchips aren't just essential for phones, but also autos, not to mention a host of developing industries meant to see us through the Fourth Turning. 

"It's a complex issue, but this new 'Small yard, high fence' approach has us bullish on bilateral cooperation for microchip production, says Edward Lehman. "There is going to be a lot of potential for upstream and downstream cooperation in China, with less political pressure from Washington."