A brief discussion on the impact of Sino-US relations.

The competition between China and the United States is different from the previous US-Soviet competition. Previously, the US-Soviet competition was mainly in the areas of sea, land, air, and space, because at that time technology was not as advanced as it is now, so the competition was limited. However, with the dissolution of the Soviet Union in 1991, President George H.W. Bush of the United States declared the end of the Cold War between the US and the Soviet Union in a television speech in 1991. As one era ended, another began, and with the end of the Soviet Republic, China became the world's second-largest economy, leading to increasingly fierce competition between the United States and China. $SSIF DCE Iron Ore Futures Index ETF (03047.HK)$

The current competition between China and the United States is actually a strategic competition in both virtual space and natural space. Virtual space plays a huge role, and the digital economy has become the main source of wealth for major countries. The digital economy refers to a new economic form reshaped by optimizing the economic structure through advanced digital technology, with large data and digital information being key production elements. Among them, digital industrialization (telecommunications, information technology, and internet industry becoming the main industries in society) and industrial digitalization (upgrading traditional industries, including but not limited to emerging technologies such as artificial intelligence, blockchain, and the Internet of Things) are the main productivity drivers for the development of the digital economy. In recent years, these areas have been continuously innovating in technology, with chatgpt becoming a recent hot topic, widely applied due to its information processing capabilities. What is the significance behind the digital economy? The more data we collect, the more resources we have, which translates to more wealth. The core of digital technology lies in the performance of chips in hardware. With continuous chip improvements and integration with research in other disciplines, the development of digital technology is rapid and increasingly crucial for a country, as technology is the primary productivity. In July 2022, the United States passed the 'Chips and Science Act,' including four core elements related to chips, involving direct funding subsidies of $52.7 billion and approximately $24 billion in tax deductions, not only for building new semiconductor manufacturing facilities but also for expanding existing wafer fabs. The bill includes a total of $39 billion in direct subsidies, dedicated to supporting local semiconductor manufacturing over a five-year period, known in the industry as the CHIPS subsidy. It also provides a 25% tax deduction for semiconductor manufacturing investments, also known as the FABS Act. The total scale of expected tax refunds from fiscal year 2023 to fiscal year 2027 amounts to $24 billion. Additionally, it allocates $11 billion in special funds for advanced semiconductor technology and packaging research, and $2.7 billion for the development and education of the domestic chip industry workforce in the United States through a series of subsidies for industry engineers and technical workers' training programs. It also encourages companies such as Intel, Samsung, and Taiwan Semiconductor to build factories in the United States, with some clauses restricting related companies' economic and trade investment activities in China. The United States has long accused China of unfair competition through WTO lawsuits, supporting technological innovation with national subsidies, and using state power to compete with enterprises, but the laws enacted by the US also apply similar methods. $Taiwan Semiconductor (TSM.US)$ $Intel (INTC.US)$