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TURKEY
ENERGY SECTOR AND MILITARY TECH

BlowMe AI: Turkey's BIG Decision Shocked the NATO: What the Hell is Going On?


Original article: https://www.youtube.com/watch?v=0TH9RvCGTAw
Peter Burgess COMMENTARY

Peter Burgess


Turkey's BIG Decision Shocked the NATO: What the Hell is Going On?

BlowMe AI

55.3K subscribers ... 613,104 views ... 5.8K likes

Sep 18, 2024

#TurkeyBRICS #Erdogan #NATO

Turkey, a key NATO ally and EU candidate, has made a significant move towards joining BRICS, leaving EU and NATO leaders in shock. With Turkey’s strategic importance, control over the Turkish Straits, and growing ties with BRICS nations, its geopolitical shift raises crucial questions. What impact will this have on NATO and EU relations? Will Turkey’s BRICS aspirations lead to a new global balance? Watch as we explore Turkey’s evolving foreign policy, its implications for the West, and what the future holds for this pivotal nation. #TurkeyBRICS #NATO #Erdogan #Geopolitics #globalrelations
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Transcript
  • 0:00
  • our president has repeatedly stated that we want to become a member of bricks for
  • decades turkey has stood at a crucial Cross Roads both geographically and geopolitically as a key NATO member and
  • EU candidate turkey has long been seen as a vital link between east and west
  • but recent developments have sent shock waves through Western capitals leaving many to wonder what's next for turkey's
  • place in the world to understand the magnitude of turkey's recent moves we need to revisit the complex history of
  • its relationship with the West turkey joined NATO in 1952 just 3 years after
  • the alliance's formation its strategic location made it an indispensable partner in containing Soviet influence
  • during the Cold War turkey's NATO membership has been a Cornerstone of its security policy for over seven decades
  • providing it with a seat at the table of the world's most powerful military Alliance however turkey's Journey
  • towards European integration has has been far more complicated and fraught with challenges turkey first applied for

  • 1:04
  • EU membership in 1987 under the leadership of prime minister turet usol
  • this move was seen as a natural progression of turkey's Westward orientation which had been a defining
  • feature of its foreign policy since the founding of the modern Turkish Republic in
  • 1923 despite being granted canidate status in 1999 and beginning formal
  • accession talks in 2005 progress has has been painfully slow the negotiations
  • have been marred by political disputes concerns over turkey's human rights record and cultural differences as of
  • 2024 turkey has opened only 16 out of 35 required chapters for EU membership with
  • just one provisionally closed the process has effectively stalled since 2019 reflecting the deepening Rift
  • between anara and Brussels several factors have contributed to this impass
  • the EU has expressed serious concerns over the erosion of democratic norms and the rule of law in Turkey particularly

  • 2:05
  • following the 2016 coup attempt and the subsequent Crackdown on opposition figures journalists and Civil Society
  • organizations the ongoing dispute over Cyprus remains another major obstacle
  • turkey's refusal to recognize the Republic of Cyprus an EU member state and its continued military presence in
  • the northern part of the island have further complicated its EU aspirations but it's not just the EU
  • relationship that's under strain turkey's place within NATO has also become increasingly complicated leading
  • to the current shock waves reverberating through the alliance Mr President it's good to see
  • you again like with you and uh you know we're this historic summ
  • meeting a lot of things we made uh you made uh all the

  • 3:02
  • more historic by the agreement you reached yesterday and the addition of Sweden how you're going to
  • proceed thank you for youry and your courage to take that on and I want to
  • thank you for your leadership Mr President summer Is reaffirming our
  • commitment to Nato defense close allies in NATO and hope you can make him strong
  • so welcome
  • Mr President my dear friend I would like to first of all
  • thank you for congratulating me in the aftermath of my reelection to my current post and I'm grateful for the uh

  • 4:05
  • congratulatory messages that you have extended to me and within the framework of our
  • strategic mechanism I think it's high time for the heads of states to get together for further
  • consultations that's why I
  • believe today's meeting with you uh within the margin of the NATO Summit is the first step forward
  • our meetings prior to this were mere warm-ups but now we are initiating a new
  • process this new process is a process of 5 years and now
  • you are getting prepared for the forthcoming elections and with the forthcoming elections I would like to
  • take this opportunity to also uh wish you the best of
  • luck thank you I look forward to meeting with you for the next 5 years

  • 5:02
  • under President Reep tayb erdogan turkey has pursued a more assertive and independent foreign policy often at odds
  • with its NATO allies this shift has been driven by a combination of factors including turkey's desire to assert
  • itself as a regional power its growing disillusionment with the west and erdogan's own political
  • Ambitions one of the most contentious issues has been turkey's decision to purchase the Russian S400 missile
  • defense system despite vocal opposition from NATO this move finalized in 2017
  • led to turkey's expulsion from the us-led F35 fighter jet program and triggered sanctions under the countering
  • America's adversaries through sanctions act the S400 deal was seen as a clear
  • signal of turkey's willingness to pursue its own interests even at the cost of antagonizing its long-standing allies it
  • raised serious questions about turkey's commitment to Nato and its compatibility with the alliance's defense systems but

  • 6:01
  • the tensions don't stop there turkey's military operations in Syria particularly its offensives against
  • Kurdish forces that have been key us allies in the fight against Isis have further strained relations with NATO
  • Partners these actions have led to accusations that turkey is undermining the coalition's efforts in the region
  • and pursuing a destabilizing agenda despite these challenges turkey's strategic importance cannot be ignored
  • its control over the Turkish Straits the Bosphorus and dardan LS gives it a crucial role in Black Sea security this
  • has become even more significant in light of Russia's invasion of Ukraine and the ongoing conflict in the region
  • moreover turkey's role in managing migration flows makes it a crucial partner for the EU the 2016 EU turkey
  • Refugee deal while controversial has been instrumental in reducing the number of irregular migrants entering Europe
  • through the Eastern Mediterranean route however president erdogan has not hesitated to use this leverage for

  • 7:01
  • political gain occasionally threatening to open the gates to Europe if turkey's demands are not met this has led to
  • accusations of blackmail from European leaders and further eroded trust between the two sides as turkey's frustrations
  • with the West have grown it has increasingly looked Eastward for new alliances and opportunities this pivot
  • is perhaps the most shocking development for EU and NATO leaders who have long counted on turkey as a reliable Western
  • oriented partner in a volatile region turkey's interest in joining bricks the economic block comprising Brazil Russia
  • India China and South Africa has raised eyebrows in Western
  • capitals president erdogan attended the 2018 bricks Summit in Johannesburg as a
  • special guest expressing turkey's desire to join the group in 20122 he reiterated
  • this ambition stating that turkey's membership in bricks would give the group a new Dimension this pivot is

  • 8:01
  • driven by several factors including turkey's desire to diversify its International alliances and reduce
  • dependence on Western institutions economically turkey sees bricks as an opportunity to strengthen ties with
  • large growing markets and potentially explore alternative Financial systems
  • turkey's trade with brics Nations has grown significantly in recent years in
  • 2021 its trade volume with the five brics countries reached 61 .5 billion
  • accounting for 14.4% of turkey's total foreign trade
  • this represents a substantial increase from previous years and underscores the growing economic ties between turkey and
  • these emerging Powers the recent expansion of bricks to include countries like Egypt the UAE and Iran has further
  • peaked turkey's interest this enlargement which took effect in January
  • 2024 has transformed bricks into an even more significant ific Global player potentially offering turkey a powerful

  • 9:02
  • alternative to its traditional Western Partnerships Turkish officials stress that joining bricks compliments not
  • replaces NATO commitments leveraging turkey's position as a bridge between power blocks this Eastward pivot has
  • shocked the EU and NATO prompting a reassessment of their approach in response the EU has proposed
  • a three-pronged strategy for 2024 to deepen trade relations with turkey this
  • includes enhancing diplomatic engagements resuming European Investment Bank operations and modernizing the
  • Customs Union the latter is particularly significant as an updated agreement could expand Beyond industrial goods and
  • processed agricultural products potentially boosting bilateral trade substantially however turkey's path to
  • EU membership continues to face significant opposition from several member states France Germany and Austria
  • have been among the most vocal opponents citing concerns over human rights Democratic standards and cultural

  • 10:05
  • differences French president macron advocates for a partnership with turkey instead of EU membership citing
  • incompatibility with European values under erdogan Austrian Chancellor nehammer
  • calls for terminating turkey's EU accession process NATO faces a precarious
  • situation turkey's strategic importance and military strength make make it a crucial Ally but its unpredictable
  • Behavior strains relations as NATO's second largest army and controller of the Turkish Straits turkey holds
  • significant Leverage The Alliance must balance maintaining turkey's engagement while addressing member concerns
  • especially given turkey's actions in Syria S400 purchase and opposition to certain NATO decisions like Sweden and
  • finland's membership bids turkey's geopolitical shifts impact Global Dynamics Russia and China Court turkey

  • 11:01
  • seeking to weaken Western ties Russia aims to undermine NATO while China increases Investments turkey's assertive
  • Middle East policy reshapes Regional relations though recent reconciliation efforts indicate potential rebalancing
  • as we look to the Future several key questions remain will turkey continue to drift away from its Western allies or
  • can a new equilibrium be found how will turkey's potential alignment with bricks impact Global power Dynam dyamics can
  • the EU and NATO find a way to address turkey's concerns while maintaining their
  • principles what impact will turkey's evolving foreign policy have on Regional stability in the Middle East and Eastern
  • Mediterranean how will turkey's domestic political situation particularly the opposition's growing strength influence
  • its International orientation NATO fears a weakened Southeastern flank despite tensions hope
  • remains for recalibration given turkey's economic ties to Europe and aligned security

  • 12:02
  • interests Western leaders must engage turkey constructively while upholding their
  • values the relationship's Evolution may lead to a new understanding or a fundamental realignment Turkey's next
  • move is crucial with profound implications for the global order in the 21st century turkey's 20 billion nuclear
  • project just took a shocking turn when Germany's Seaman energy refused to deliver critical Parts with Russ now
  • buying from China to keep the project alive what's really happening behind the scenes the akuu nuclear power plant
  • located in turkey's Mediterranean province of meren is A2 billion project
  • with four reactors totaling 4,800 megawatts of capacity the project stems
  • from an agreement between turkey and Russia signed in 2010 initially turkey planned to launch the first reactor in
  • 2023 however delays have pushed the start date to 2024 with the remaining
  • reactors scheduled to come online by the end of 2028 Seaman Energy's non- delivery will delay the launch of ayu's

  • 13:06
  • first reactor by several months bayar told the statun anad deloo agency he
  • suggested the decision likely stems from Western sanctions over Russia's war in Ukraine a seaman energy spokesperson
  • confirmed that some parts were not delivered to Turkey due to German export regulations some parts were delivered a
  • long time ago but not for a good year now due to export Customs licenses that have not yet yet been issued we must of
  • course comply with the export regulations the spokesperson said the withheld equipment is intended for a gas
  • insulated substation to transmit electricity from the plant to turkey's grid this component is crucial for the
  • Project's completion in response to the delay rosatom Russia's State nuclear
  • energy company has sought alternative suppliers in China Bay rockar stated there are
  • alternatives ratam already ordered alternative parts from Chinese firms and they will come from China rosatom

  • 14:05
  • subsidiary auuu nuclear confirmed this move rosetum therefore ordered the
  • equipment from Chinese manufacturers to keep up with project deadlines turkey's government has
  • expressed strong dissatisfaction with the situation president RP tayib erdogan
  • raised the issue with German Chancellor Olaf Schultz during a bilateral meeting
  • erdogan stated this has seriously bothered us I reminded German Chancellor Olaf Schultz
  • of that in our bilateral meeting Bay rokar criticized Seaman Energy's decision describing it as a political
  • decision on an issue that is not subject to any International sanctions financing or legal problems he added that the
  • issue was raised at the highest level the Turkish government is considering potential consequences for Seaman's
  • energy B rockar said especially a company that has such a strong presence
  • in the Turkish market should pay a price he added this attitude will make us question their position in future

  • 15:06
  • projects turkey maintains close ties with both Moscow and Kiev and opposes
  • the European and US sanctions on Russia imposed after Russia's 2022 invasion of
  • Ukraine B rockar argued if the purpose here is implementing sanctions against
  • Russia then it is turkey which is suffering the damage despite these challenges construction of the auu plant
  • has progressed significantly the first reactor is over 90% complete and nuclear
  • fuel was loaded into the first power unit in 2023 once operational the plant
  • is expected to produce around 10% of turkey's electricity needs the akyu
  • project is Central to turkey's energy strategy nuclear energy plays an important role in reaching turkey's 2053
  • Net Zero emission Target the country plans to build nuclear power plants in
  • two other locations after Ayu the intergovernmental agreement

  • 16:03
  • signed between Russia and Turkey in May 2010 for the akuu nuclear power plant
  • outlines four vv1 1200 power units with a total installed capacity of 4,800
  • megaw construction began in 2013 and accelerated in 2018 the agreement limits local
  • ownership of the plant at 49% requires the first reactor to be commissioned into
  • 2025 and includes a power purchase agreement at a guaranteed price turkey's
  • pursuit of nuclear energy has raised concerns among some International observers NATO views turkey's
  • relationship with Russia as a delicate balancing act that often causes tension within the alliance turkey a key NATO
  • member since 1952 has pursued closer economic and political ties with Russia
  • in recent years particularly in areas like energy and defense this has been

  • 17:01
  • exemplified by Major agreements such as turkey's purchase of the Russian S400 missile defense system which triggered
  • us sanctions and raised concerns about the compatibility of Russian technology with NATO systems the European Union has
  • also expressed concerns over turkey's energy cooperation with Russia in 2019
  • the EU imposed punitive measures on Turkey including freezing certain membership talks and halting defense
  • contract tracks in response to turkey's energy exploration in the Eastern Mediterranean the United States has made
  • efforts to constrain rosatom globally in April 2023 the US state department
  • stated it would constrain rosatom given that it uses energy exports including
  • the nuclear sector to exert political and economic pressure on its customers globally despite these International
  • concerns turkey continues to pursue its nuclear energy goals the country is in
  • negotiation with various countries for additional nuclear projects Yousef Salin

  • 18:04
  • director General nuclear energy and international projects Ministry of energy told Reuters the USA is showing
  • serious interest in turkey's goal of increasing its nuclear energy capacity and building new power plants we are
  • negotiating with the USA for both large-scale power plants and small modular reactors this is a statement of
  • intent Salin also mentioned ongoing negotiations with South Korea and Russia
  • for a second nuclear power plant planned for the Black Sea region of syop and with China's state power Investment
  • corporation for a third plant in Northwestern turkey's thce region turkey's ambitious energy plan aims to
  • build three four reactor nuclear plants and complement them with small modular reactors smrs for a total of 20,000 M of
  • generation capacity this strategy is designed to diversify turkey's electricity production mix and reduce

  • 19:00
  • its Reliance on energy Imports the auuu project has created thousands of jobs
  • with around 80% of the workforce being Turkish citizens it also includes educational initiatives with Turkish
  • Engineers being trained in Russia to eventually take over plant operations
  • turkey's energy policy extends Beyond nuclear power the country is actively
  • pursuing Partnerships in oil and natural gas Fields abroad energy minister irar
  • noted that turkey has Partnerships in azer Ban's oil and gas resources in the Caspian Sea including a 20% share in the
  • Sha Denise project turkey also has a partnership in three oil fields in bazra
  • Iraq generating 15,000 barrels of oil Revenue per day barakar expressed
  • interest in expanding turkey's role in these sectors stating we need to be more active more intense and more active in
  • oil and natural gas Fields He also mentioned IAL projects in Libya and Somalia in addition to these efforts

  • 20:02
  • turkey is working to increase its domestic energy production exploration activities are
  • ongoing in the sakaria gas field in the Black Sea region by rockar reported that
  • a production level of over 6 million cubic meters has been reached in this field meeting the natural gas needs of
  • 2.6 million households the minister outlined ambitious production targets
  • our goal is to reach the 10 million cubic meters Target in the first phase we will exceed 7 million cubic M by the
  • end of September but we will reach our first Target of 10 million cubic m in the first quarter of
  • 2025 turkey's energy strategy also involves diversifying its energy sources
  • and expanding its role as an energy Hub Bay rockar noted while we ensure our own
  • Supply security by importing gas from as many different sources as possible into our country diversifying it and
  • expanding our supply portfolio we are also working on shipping additional capacity to Europe the country has

  • 21:02
  • started exporting natural gas to several countries including Hungary Romania and
  • Bulgaria this expansion of turkey's energy role comes at a critical time as the potential closure of Russia's gas
  • Transit via Ukraine to the European Union at the end of the year could create serious Supply security issues
  • for Europe turkey's growing energy cooperation with Russia has led to a significant increase in trade volume
  • volume between the two countries in 2023 the trade volume exceeded $65 billion
  • continuing a trend from the previous year over the past 5 to six years the
  • bilateral trade volume has tripled driven by increasing energy and economic
  • cooperation energy Remains the Cornerstone of the turkey Russia trade relationship Russia is a major supplier
  • of natural gas to turkey with deliveries made through the turkstream pipeline in
  • 2023 Russian President Vladimir Putin proposed establishing a natural gas Hub

  • 22:04
  • in Turkey which would enable gas to be traded and priced independently of Western markets turkey and Russia have
  • also made efforts to reduce their Reliance on the US dollar in bilateral trade opting to increase transactions in
  • their respective local currencies the Turkish Lera and the Russian Ruble this shift is part of a broader strategy by
  • both Nations to diversify their trade settlement mechanisms and reduce vulnerability to International sanctions
  • and currency fluctuations a significant portion of the push toward local currency trade has been in the energy
  • sector Russia as one of turkey's primary suppliers of natural gas has increasingly accepted payments in Rubles
  • this shift became particularly important after the imposition of Western sanctions on Russia in response to its
  • invasion of Ukraine turkey has also enabled the use of Russia's meere payment system in its banking sector
  • facilitating transactions for Russian tourists and businesses this supports local currency usage in trade and

  • 23:03
  • tourism further strengthening the financial cooperation between the two countries the growing cooperation
  • between turkey Russia and China as evidenced by rosat Tom's decision to Source equipment from China for the auuu
  • project marks a further deepening of ties between these nations this cooperation follows turkey's bid to join
  • the brics group of Emerging Market Nations which includes both Russia and China despite all the challenges the
  • Turkish government remains committed to the project energy Minister Bay rockar has emphasized the importance of nuclear
  • energy in turkey's Future Energy Mix he stated nuclear energy plays an important
  • role in reaching turkey's 2053 Net Zero emission Target the auuu plant is being
  • built under a buildon operate model which is a first for a nuclear power plant worldwide under this Arrangement
  • rosatom will not not only construct but also operate and maintain the plant ensuring its long-term functionality

  • 24:04
  • tury has transformed itself from client to competitor so far Turkish Defense companies have produced drones tanks and
  • helicopters among other gear but a much more ambitious project is now in sight holy crap turkey and China have just
  • launched Aid driven military robots that shocked the United States turkey unveiled the steel Dome concept at the
  • international defense industry fair in Istanbul aimed at competing with Israel's renowned Iron Dome this system
  • integrates a wide range of Technologies to create a robust and adaptable defense
  • network utilizing Network Centric Technologies and artificial intelligence
  • the steel Dome can process vast amounts of data in real time accurately
  • identifying and neutralizing various threats including Rockets missiles drones and artillery fire while the
  • steel Dome protects from aerial threats China's response takes the fight to the skies with the wing L 2 developed by the

  • 25:00
  • changdu aircraft Industry Group this UAV is pushing the boundaries of aerial
  • Warfare with a payload capacity of up to 480 kg and the ability to stay airborne
  • for up to 32 hours it's redefining long- range operations but China isn't the
  • only one making waves in drone technology turkey has unveiled the bayar tb3 an advanced UAV that's a direct
  • challenge to us dominance in military drone technology this Naval Powerhouse is designed to launch from short runways
  • or ship decks enhancing turkey's Maritime capabilities in unprecedented ways the tb3 boasts a wingspan of 14 M
  • and a maximum takeoff weight of 1,450 kg carrying a payload of up to 280
  • kg it's equipped with Advanced sensors electrooptical infrared cameras
  • synthetic aperture radar and precision guided Munitions with the ability to stay airborne for more than 24 hours at

  • 26:00
  • altitudes up to 30,000 ft it's a GameChanger for long duration missions but turkey Innovation doesn't stop at
  • Large Scale drones the cargo 2 is a quadcopter drone that uses machine learning algorithms to operate
  • autonomously this isn't Science Fiction it's a reality changing the face of Modern Warfare the cargo 2 is designed
  • as an anti-personal weapon capable of selecting and engaging human targets based on machine learning object
  • classification while turkey focuses on aerial threats China is taking AI to the
  • ground in a shocking display of technological prowess China has introduced a robot dog armed with a
  • machine gun during recent military exercises this AI powered quadrip was seen entering buildings ahead of
  • soldiers and firing bursts of bullets as it Advanced on Targets this development blurs the lines between human and
  • machine decisionmaking on the battlefield these technological advancements aren't just changing how
  • Wars are fought they're altering the very nature of warfare as turkey and China push the boundaries of military

  • 27:04
  • technology they're challenging the US's position as the world's preeminent military power this isn't just an arms
  • race it's a race for technological Supremacy that could reshape the global order the United States isn't sitting
  • idle they're intensifying efforts to develop Next Generation military Technologies however the question
  • remains can they keep Pace with the rapid Innovation coming out of turkey and China meanwhile China continues to
  • innovate with the w z7 soaring Dragon w z7 soaring Dragon another game-changing
  • UAV the W z7 is characterized by a unique join Wing design that improves
  • aerodynamic efficiency and stability it's equipped with Advanced sensors and radar systems for real-time ISR
  • operations over vast areas including airace and Maritime regions with a
  • wingspan of 24 M it's capable of providing deta targeting information enhancing situational awareness and

  • 28:01
  • supporting various military operations not to be outdone turkey has its own stealth drone in development developed
  • by Turkish Aerospace Industries the Anka 3 represents a significant step in UAV
  • Evolution this stealthy unmanned combat aerial vehicle is designed for high-end
  • reconnaissance combat and intelligence gathering missions its low observable design enhances stealth capabilities
  • making it ideal for operations in contested environments the Anka 3 is expected to support a wide variety of
  • missions from intelligence and surveillance to air to ground strikes and potentially electronic warfare operations but when it comes to stealth
  • technology China is pushing the boundaries even further China's gj1 also
  • known as the sharp swword is a stealth unmanned combat aerial vehicle developed by aviation industry Corporation of
  • China it features a Sleek flying wing design that reduces its radar
  • crosssection and enhances stealth capabilities equipped with an internal weapons Bay it can carry various types

  • 29:04
  • of Munitions while minimizing radar visibility the GJ 111's autonomous operation capability allows it to
  • execute complex missions without human intervention demonstrating China's commitment to developing Next Generation
  • military capabilities the development of these Advanced military Technologies by
  • turkey and China has far-reaching implications for Global Security Dynamics these Innovations are not only
  • challenging US military superiority but also reshaping the landscape of Modern
  • Warfare as these Technologies continue to evolve they will undoubtedly reshape
  • the future of warfare and international relations the global Community must grapple with the implications of these
  • advancements balancing the potential benefits with the risks they pose to global stability and security what do
  • you think about this global Military Tech race could it lead to unprecedented advancements in defense technology or

  • 30:01
  • might it increase the risk of conflict will it bring countries together in a new era of deterrence or drive them
  • apart in an escalating arms race how will these advancements in military technology affect global Security will
  • they make the world safer by reducing human casualties in conflict or more dangerous by lowering the threshold for
  • military action and what role should citizens play in shaping the development and use of these Technologies the power
  • of these next Generation combat drones and Military robots is set to redefine the battlefield but where exactly that
  • path leads remains to be seen the implications for Global military power strategic Dynamics and even the ethics
  • of warfare are profound think of semiconductors as the oil of the 21st
  • century just as oil fueled the Industrial Revolution these tiny chips are powering our digital Revolution well
  • China's Huawei is challenging Nvidia with a new chip for artificial intelligence according to the Wall Street Journal Huawei has reportedly

  • 31:02
  • told potential clients that the chip is comparable to nvidia's h100 in a stunning development that's
  • sending shock waves through the tech World Huawei has unveiled its latest high-end AI chip the Ascend 90010 C this
  • isn't just another processor it's a direct challenge to nvidia's h100 the
  • current gold standard in AI Computing the ascend 910c isn't just a
  • technological achievement it's a bold statement in the ongoing silicon showdown between the US and China if
  • huawei's claims hold up this chip could potentially reshape the global AI landscape tilting the scales of
  • technological power in China's favor in 2022 the US decided to play hard ball
  • with China's Tech Ambitions they rolled out strict export controls telling
  • American companies no selling top chips or chipm gear to China the goal was

  • 32:02
  • clear keep China from accessing cuttingedge semiconductor technology and slow its technological
  • advancement but here's where it gets interesting faced with this digital blockade China didn't throw in the towel
  • instead they launched a massive allout push to develop their own chip technology we're talking billions of
  • dollars poured into research and development state-of-the-art facilities popping up across the country and
  • National rallying cry for Tech Independence despite or perhaps because of the US restrictions China's
  • semiconductor production has skyrocketed we're seeing a jaw-dropping 29% increase
  • compared to the previous year but that's not all in a move that's left analysts scratching their heads China managed to
  • import over 1,000 Advanced lithography machines each of these machines costs
  • around $10 million do the math and you're looking at a serious investment in chipm muscle
  • Dr deer Ernst a leading expert in the tech World puts it this way China's push

  • 33:05
  • for Tech self-reliance is accelerating in response to us pressures in other
  • words the harder the US pushes the harder China pushes back this unexpected
  • turn of events is raising a critical question did America's chip ban accidentally light a fire under China's
  • semiconductor industry it's as if the US attempt to put out a fire has instead
  • doused it with gasoline The Fallout from this semiconductor Showdown extends far
  • beyond geopolitics remember the great chip shortage of 2021 that made buying a new
  • car feel like scoring tickets to a soldout concert that was just a preview of how chip politics can disrupt daily
  • life now consider the implications of China potentially dominating chip production it's not just about consumer
  • electronics we're talking about the foundation of emerging Technologies like AI Quantum Computing and 6G networks

  • 34:02
  • these gamechanging Innovations all hinge on Advanced semiconductors whoever leads in chips
  • leads in these transformative Technologies and right now China's making a serious play for the top spot
  • the US government's concerns go beyond economic competition the revised rules
  • were clear about us worries over China's plans for advanced AI capabilities the
  • document stated Advanced AI capabilities facilitated by supercomputing built on
  • Advanced semiconductors present US National Security concerns because they can be used to improve the speed and
  • accuracy of military decisionmaking planning and Logistics they can also be used for cognitive electronic warfare
  • radar signals intelligence and jamming this statement underscores the Dual use nature of semiconductor
  • technology what powers your smartphone could also enhance military cap capabilities blurring the lines between

  • 35:00
  • civilian and defense Technologies China isn't taking these restrictions lying down in response to the latest us moves
  • China has criticized the new rules stating they will disrupt the international semiconductor Market as
  • well as cooperation among Enterprises but China's actions speak
  • louder than words reports suggest that China is taking steps to block the use
  • of American processors in govern govern computers instead favoring Chinese
  • Chips new guidelines reportedly instruct government offices and Chinese Communist
  • Party entities above the township level to use safe and reliable systems
  • including processors and operating systems developed by Chinese companies this push for self-reliance extends to
  • chip manufacturing as well various provincial governments in China are ramping up subsidies for chip
  • Manufacturing companies like semiconductor manufacturing International Corp and

  • 36:01
  • Huawei appear to be major beneficiaries of these subsidies in Shanghai alone 191
  • major projects are set to be subsidized including two of smic's 300 millimeter
  • production lines currently under construction the US isn't throwing in the towel just yet enter the chips act a
  • massive $52 billion investment aimed at boosting domestic chip production it's
  • an attempt to rebuild America's semiconductor muscle which has atrophied over Decades of Outsourcing the results
  • are starting to show there's been a surge in electronics Factory spending in the US with Investments hovering near
  • all-time Highs but here's the rub while America's buildout is impressive it's
  • still playing catchup to China's Breakneck Pace while the US government has been successful in getting its
  • companies and Allied Partners to comply with tighter regulations Western companies are not particularly happy at
  • the Prospect of losing China's business Nvidia for instance used to have a 90%

  • 37:02
  • share of China's AI chip Market the company's head Jensen hang reportedly
  • said in June last year that continuing us export control regulations will lead
  • to permanent loss of opportunities for the US industry asml another critical
  • player in the Chip And semiconductor industry has also raised concerns asml CEO Peter wenink warned
  • that cutting off China China could drive Innovation within the country potentially making China more
  • competitive at the cost of others he stated there are 1.4 billion Chinese
  • many of them smart they come up with solutions that we have not yet thought of you force them to become very
  • Innovative these industry voices highlight the complex interplay between National Security concerns and economic
  • interests in the global semiconductor Market the semiconductor saga continues
  • to evolve in late March 2024 the Biden Administration released revised rules

  • 38:03
  • that will further tighten China's access to us artificial intelligence chips and chipm tools these new restrictions set
  • to take effect within a week of their announcement are designed to maintain the effectiveness of previous controls
  • close loopholes and ensure the durability of the
  • restrictions according to Media reports these revised rules will also affect laptops containing Advanced chips
  • moreover the US is reportedly planning to compile a list of advanced Chinese chip factories that will be barred from
  • accessing American Technology this list is intended to Aid better compliance with us sanctions
  • these moves come on the heels of the Commerce Department's suspension of licenses for dozens of us suppliers
  • selling chip making materials and parts worth millions of dollars to China's semiconductor manufacturing
  • International Corp this step was taken after smic developed New Generation 7

  • 39:01
  • nanometer chips for Huawei a development that raised alarm bells in Washington as
  • we stand on the brink of this new era in the chip Wars one thing's for sure the semiconductor Saga is far from over it's
  • a high stakes game of technological cat and mouse with global Supremacy hanging in the balance will China's unexpected
  • Triumph reshape the tech landscape Can America regain its silicon crown and how
  • will digital drama impact your life the answers to these questions are
  • still unfolding but one thing's crystal clear in the 21st century the power to change
  • the world fits on a fingertip and right now China's fingerprints are all over it
  • as long as the great power rivalry between the US and China persists and China continues to utilize these
  • Advanced Technologies for enhancing its military capabilities it's unlikely that the US will slow down or relax its
  • export control measures business trade and Technology interests May complain and they may have
  • 40:06
  • valid points about The Economic Consequences of these growing restrictions but political and National
  • Security interests will ultimately Prevail this silicon Showdown is more than just a battle for technological
  • Supremacy it's a contest that will shape the future of global power influence the development of cuttingedge Technologies
  • and potentially affect every aspect of our increasingly digital lives from the smartphone in your pocket to the next
  • breakthrough in artificial intelligence the outcomes of this Chip War will reverberate through our world for
  • decades to come as we watch this technological tug of war unfold remember
  • the chips may be microscopic but the stakes couldn't be higher the future of global power cuttingedge Tech and maybe
  • even your next smartphone all hang in the balance this silicon Showdown is just getting started and the world is
  • watching with baited breath to see who will emerge victorious in this high stakes game of technological chess


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